Hewlett-Packard Beats Out Lockheed for $2.5 Billion NASA Contract
Dec 29th 2010 6:30PM
Updated Dec 29th 2010 7:39PM
Hewlett-Packard (HPQ) has won a contract worth up to $2.5 billion to supply computer equipment and information-technology services to the National Aeronautics and Space Administration (NASA).
The contract -- which includes hardware and software, as well as maintenance -- is scheduled to last at least four years, with options to extend it up to 10 years, NASA announced Tuesday. Under the deal, Hewlett-Packard's IT management group will help support NASA's scientific and research operations.
NASA's contract comes as a boon to Hewlett-Packard's growing services until, which accounted for 27% of the company's revenue and 34% of its operating income for the quarter ended Oct. 31. The company's profit for the quarter rose 5.2% to $2.54 billion on revenue that grew 8.1% to $33.3 billion.
Hewlett-Packard beat out Lockheed Martin (LMT) for the contract, Bloomberg News reports, adding that Lockheed previously had performed most of the duties Hewlett-Packard is taking on.